How to Handle a Breach of ContractDetermine the facts. A small business owner can classify whether there has been an actual breach. ... Reach out to the offender. But the courtroom is not your next stop. ... Seek legal counsel.
The basic breach of contract elements require you to prove:There was a valid contract;You performed your part of the contract;The defendant failed to perform their part of the contract; and.You sustained damages caused by the defendant's breach.
The existence of a contract; Performance by the plaintiff or some justification for nonperformance; Failure to perform the contract by the defendant; and, Resulting damages to the plaintiff.
Common Affirmative Defenses to a Breach of Contract ClaimThe contract was supposed to be in writing. ... The contract is indefinite. ... There is a mistake. ... You lacked capacity to contract. ... You were fraudulently induced to enter into a contract. ... The contract is unconscionable. ... Estoppel. ... The contract is illegal.
Those who are guilty of a breach of contract may not be imprisoned as it is a civil case, and not a crime. They can, however, be held liable for damages, as previously mentioned.
Remedies for Breach of Contract1] Recession of Contract. When one of the parties to a contract does not fulfil his obligations, then the other party can rescind the contract and refuse the performance of his obligations. ... 2] Sue for Damages. ... 3] Sue for Specific Performance. ... 4] Injunction. ... 5] Quantum Meruit.
To sue for breach of contract, you must be able to show: Prove that there was a contract in existence – It would need to be proven that a legally binding contract was in place and that it had been breached.
The law also affords defendants several other defenses in breach of contract actions. They include: (1) unconscionability; (2) mistake; (3) fraud; (4) undue influence; and (5) duress.
Unliquidated Damages are the damages awarded by the courts on the basis and assessment of actual loss or injury caused to the party suffering breach of contract. Whereas, Liquidated Damages are the damages which the parties to the contract may agree to, as payment of a certain amount on the breach of contract.